financial statements camargo corrêa infra construções s.a....camargo corrêa infra construções...

Financial Statements

Camargo Corrêa Infra Construções S.A.December 31, 2019with Independent Auditor’s Report

Camargo Corrêa Infra Construções S.A.

Financial statements

December 31, 2019

Contents

Independent auditor’s report on financial statements ........................................................................... 1

Audited financial statements

Statement of financial position ............................................................................................................. 4Statement of profit or loss .................................................................................................................... 5Statement of comprehensive income ................................................................................................... 6Statement of changes in equity ............................................................................................................ 7Statement of cash flows ....................................................................................................................... 8Notes to financial statements ............................................................................................................... 9

São Paulo Corporate TowersAv. Presidente Juscelino Kubitschek, 1.909Vila Nova Conceição04543-011 - São Paulo – SP - Brasil

Tel: +55 11 2573-3000ey.com.br

Uma empresa-membro da Ernst & Young Global Limited

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Independent auditor’s report on financial statements

The Shareholders, Board of Directors and OfficersCamargo Corrêa Infra Construções S.A.São Paulo – SP

Opinion

We have audited the financial statements of Camargo Corrêa Infra Construções S.A. (the “Company”),which comprise the statement of financial position as at December 31, 2019, and the statements ofprofit or loss, of comprehensive income, of changes in equity and of cash flows for the year thenended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of Camargo Corrêa Infra Construções S.A. as at December 31, 2019, and itsfinancial performance and cash flows for the year then ended in accordance with the accountingpractices described in Note 2.

Basis for opinion

We conducted our audit in accordance with Brazilian and International Standards on Auditing. Ourresponsibilities under those standards are further described in the Auditor’s responsibilities for theaudit of the financial statements section of our report. We are independent of the Company and itssubsidiaries in accordance with the relevant ethical principles set forth in the Code of ProfessionalEthics for Accountants, the professional standards issued by Brazil’s National Association of StateBoards of Accountancy (CFC) and we have fulfilled our other ethical responsibilities in accordancewith these requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Emphasis of matter

Without qualifying our opinion, we draw attention to Note 10.b to the financial statements, which statesCamargo Corrêa Infra Construções S.A. holds an indirect interest of 55% in Consórcio CCC Ituango(the “Consortium”), located in Medellín, in Colombia, which is engaged in the construction of theItuango Hydroelectric Project. The contractual term of this project has ended without completion ofsuch construction work due to the incidents that took place between April and May 2018. TheConsortium has been negotiating with the counterparty and has entered into annual contractualamendments (the last one effective until June 2020 with extension permitted) to mitigate the effects ofthis claim, and continuing the services to complete the construction work will depend on the approvalof new amendments to the agreement by the counterparty. Our opinion is not qualified in respect ofthis matter.

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Responsibilities of management and those charged with governance for the financialstatements

Management is responsible for the preparation and fair presentation of the financial statements inaccordance with the accounting practices adopted in Brazil, and for such internal control asmanagement determines is necessary to enable the preparation of financial statements that are freefrom material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s abilityto continue as a going concern, disclosing, as applicable, matters related to going concern and usingthe going concern basis of accounting unless management either intends to liquidate the Company orto cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reportingprocess.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee thatan audit conducted in accordance with Brazilian and International Standards on Auditing will alwaysdetect a material misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected to influencethe economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Brazilian and International Standards on Auditing, we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:

· Identified and assessed the risks of material misstatement of the financial statements, whether dueto fraud or error, designed and performed audit procedures responsive to those risks, and obtainedaudit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than the risk of not detecting oneresulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.

· Obtained an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the Company's internal control.

· Evaluated the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.

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· Concluded on the appropriateness of management's use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company’s ability to continue as a going concern. Ifwe conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Company to cease to continueas a going concern.

· Evaluated the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and eventsin a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.

São Paulo, May 27, 2020.

ERNST & YOUNGAuditores Independentes S.S.CRC-2SP034519/O-6

Cezar Augusto Ansoain de FreitasAccountant CRC-1SP234620/O-4

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Statement of financial positionDecember 31, 2019 and 2018(In thousands of R$, COP and US$)

Note 2019 2019 2019 2018US$ COP R$ R$

AssetsCurrent assets

Cash and cash equivalents 4 23,491 77,042,311 94,685 7,506Trade accounts receivable 5 45,690 149,847,030 184,162 33,498Transactions with related parties 7 18,813 61,701,383 75,831 3,169Inventories 6 6,146 20,157,852 24,774 2,172Assets available for sale 8 442 1,449,146 1,781 4,333Other receivables 9 9,051 29,685,110 36,483 10,498

Total current assets 103,633 339,882,832 417,716 61,176

Noncurrent assetsDeferred income and social contribution taxes 14,b - - - 429Transactions with related parties 7 1,528 5,011,391 6,159 65,617Other receivables 9 565 1,854,353 2,279 489

2,093 6,865,744 8,438 66,535

Right of use 3,16 1,636 5,366,151 6,595 -Investment 10 21,979 72,083,808 88,591 -Property, plant and equipment 11 77,182 253,131,814 311,099 184,891Intangible assets 5 15,460 19 42Total noncurrent assets 102,895 337,462,977 414,742 251,468

Total assets 206,528 677,345,809 832,458 312,644

Liabilities and equityCurrent liabilities

Trade accounts payable 9,864 32,349,878 39,758 16,644Lease liabilities 3,16 1,575 5,165,989 6,349 -Loans and financing 13 4,840 15,873,881 19,509 6,196Transactions with related parties 7 1 2,441 3 2,981Payroll, vacation and charges payable 12 12,222 40,082,994 49,262 7,889Taxes payable 2,684 8,801,465 10,817 3,627Advances from customers 15 39,725 130,283,157 160,118 261Other obligations 475 1,563,059 1,921 1,901

Total current liabilities 71,386 234,122,864 287,737 39,499

Noncurrent liabilitiesLoans and financing 13 10,501 34,441,009 42,328 13,884Lease liabilities 3,16 28 90,317 111 -Deferred income and social contribution taxes 14,b 2,358 7,734,744 9,506 -Transactions with related parties 7 10,156 33,307,567 40,935 35,128Provision for labor, tax and civil contingencies 16 300 985,354 1,211 97

Total noncurrent liabilities 23,343 76,558,991 94,091 49,109

EquityCapital 17 130,328 427,432,872 525,315 259,710Capital reserve 1,735 5,691,619 6,995 -Accumulated losses (20,264) (66,460,537) (81,680) (39,674)Total equity 111,799 366,663,954 450,630 220,036Future capital contributions 17 - - - 4,000

Total equity 111,799 366,663,954 450,630 224,036

Total liabilities and equity 206,528 677,345,809 832,458 312,644

See accompanying notes.

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Statement of profit or lossYears ended December 31, 2019 and 2018(In thousands of R$, COP and US$, except for loss per share)

Note 2019 2019 2019 2018US$ COP R$ R$

Service revenue 18 58,904 193,186,330 237,426 115,033

Costs of services 19 (59,544) (195,282,343) (240,002) (140,500)

Gross loss (640) (2,096,013) (2,576) (25,467)

Operating expensesGeneral and administrative expenses 19 (12,295) (40,322,213) (49,556) (44,836)Other operating expenses, net 19 (981) (3,216,436) (3,953) (7,853)Equity pickup (23) (74,044) (91) -

Loss before finance income (costs) (13,939) (45,708,706) (56,176) (78,156)

Finance income 20 563 1,847,844 2,271 3,570Finance costs 20 (1,351) (4,430,431) (5,445) (1,481)Foreign exchange difference, net 20 (600) (1,969,081) (2,420) 539

(1,388) (4,551,668) (5,594) 2,628

Loss before income and social contribution taxes (15,327) (50,260,374) (61,770) (75,528)

Income and social contribution taxesCurrent 14,a (237) (777,868) (956) -Deferred 14,a 5,120 16,793,328 20,639 25,374

Loss for the year (10,444) (34,244,914) (42,087) (50,154)

Basic and diluted loss per share 17 (0.37) (1,213.22) (1,49) (1,84)


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Statement of comprehensive incomeYears ended December 31, 2019 and 2018(In thousands of R$, COP and US$)

Note 2019 2019 2019 2018US$ COP R$ R$

Loss for the year (10,444) (34,244,914) (42,087) (50,154)

Other comprehensive income (loss) - - - -

Total comprehensive income (loss) for the year (10,444) (32,244,914) (42,087) (50,154)


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Statement of changes in equityYears ended December 31, 2019 and 2018(In thousands of R$, COP and US$)

Note Capital

Income reserves

Accumulatedlosses

Future capitalcontribution Total equity

Equipment RetainedCapital Legal renewal profitreserve reserve reserve reserve

Balances at December 31, 2017 224,587 - 1,782 1,782 7,916 - - 236,067

Dividend payment - - - - (1,000) - - (1,000)Capital increase - net assets 35,123 - - - - - - 35,123Future capital contribution - - - - - - 4,000 4,000Loss for the year - - - - - (50,154) - (50,154)Absorption of loss for the year - - (1,782) (1,782) (6,916) 10,480 - -

Balances at December 31, 2018 259,710 - - - - (39,674) 4,000 224,036

Effect of adoption of CPC 06 (R2) at January 1, 2019 3,16 - - - - - 81 - 81Capital increase 17 4,000 - - - - - (4,000) -Merger of net assets 1, 17 261,605 6,995 - - - - - 268,600Loss for the year - - - - - (42,087) - (42,087)

Balances at December 31, 2019 – R$ 525,315 6,995 - - - (81,680) - 450,630Balances at December 31, 2019 – COP 427,432,872 5,691,619 - - - (66,460,537) - 366,663,954Balances at December 31, 2019 – US$ 130,328 1,735 - - - (20,264) - 111,799


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Statement of cash flowsYears ended December 31, 2019 and 2018(In thousands of R$, COP and US$)

2019 2019 2019 2018US$ COP R$ R$

Cash flow from operating activitiesLoss before income and social contribution taxes (15,327) (50,260,374) (61,770) (75,528)

Adjustments to reconcile loss before income and social contribution taxes to net cash (used in)from operating activities

Depreciation and amortization (Note 19) 2,009 6,589,097 8,098 2,103Equity pickup (Note 10) 23 74,044 91 -Reversal of provision for impairment - property, plant and equipment (Note 19) 367 1204,231 1,480 (974)Allowance for expected credit losses (Note 19) - - - 4,198Accrued interest and charges (Note 20) 200 657,445 808 818Interest on marketable securities (Note 20) - - - (239)Interest on intercompany loans, net (Note 20) 164 537,022 660 (2,252)Interest on lease 9 30,106 37 -Recognition of provision for labor contingencies (Note 19) 310 1,015,460 1,248 91Loss on disposal of property, plant and equipment (Note 19) 727 2,383,238 2,929 2,995

Decrease (increase) in operating assetsTrade accounts receivable (18,335) (60,131,001) (73,901) (13,486)Transactions with related parties 972 3,186,330 3,916 (5,904)Inventories (4,495) (14,742,880) (18,119) (1,957)Judicial deposits - - - 136Other receivables (1,995) (6,541,904) (8,040) (6,184)

Increase (decrease) in operating liabilitiesTrade accounts payable 2,589 8,489,829 10,434 4,944Transactions with related parties (146) (480,065) (590) 12,770Payroll, vacation and charges payable 8,620 28,270,138 34,744 (1,615)Taxes payable 1,208 3,963,385 4,871 1,399Advances from customers 1,525 5,000,000 6,145 261Other obligations and costs to be incurred (33) (107,404) (132) (6,630)

Cash used in operating activities (21,608) (70,863,303) (87,091) (85,054)Interest paid on loans and financing (173) (566,314) (696) (825)Net cash used in operating activities (21,781) (71,429,617) (87,787) (85,879)

Cash flow from investing activitiesMarketable securities - - - 41,138Acquisition of PP&E (Note 11) (5,728) (18,785,191) (23,087) (2,105)Cash received due to merger (Note 1) 22,114 72,526,444 89,135 -Cash from the disposal of property, plant and equipment 1,475 4,838,893 5,947 4,176Net cash from investing activities 17,861 58,580,146 71,995 43,209

Cash flow from financing activitiesIntercompany loans 20,714 67,933,279 83,490 49,892Loans and financing raised 6,847 22,457,282 27,600 -Dividend payment (Note 17) - - - (1,000)Future capital contribution (Note 17) - - - 4,000Lease liabilities paid (Note 3,16) (456) (1,494,711) (1,837) -Repayment of loans and financing (1,559) (5,111,473) (6,282) (8,302)Net cash from financing activities 25,546 83,784,377 102,971 44,590

Increase in cash and cash equivalents 21,626 70,934,906 87,179 1,920

Cash and cash equivalents at beginning of year (Note 4) 1,865 6,107,405 7,506 5,586

Cash and cash equivalents at end of year (Note 4) 23,491 77,042,311 94,685 7,506



Notes to financial statementsDecember 31, 2019(In thousands of R$, COP and US$, unless otherwise stated)

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1. Operations

Camargo Corrêa Infra Construções S.A. (the “Company”), previously named Camargo CorrêaInfraestrutura S.A., was organized on September 3, 2009, with the following main objects: (i)exploration of services in planning and performing civil construction and civil engineering projects,including earthworks, in the capacity of a contractor, performing management and other relatedservices; (ii) construction, operation and assembly of Power Lines, hydroelectric and wind powerplants and photovoltaic solar panels; (iii) construction, operation, maintenance and assembly ofgas and oil pipelines; (iv) provision of public utility services through concessions; (v) provision ofpublic cleaning, environmental and urbanization services; (vi) provision of real estatemanagement services; (vii) provision of waterway transportation and support services and portoperation services; (viii) execution of technical civil engineering installations, industrial assembly;(ix) provision of consulting, planning and support services and technical studies; (x)representation, import, export, lease, purchase and sale of transportation equipment; (xi) studiesand preparation of engineering projects (including basic and executive projects), provision ofservices of any nature in the field of consulting and/or design engineering, and provision ofmanagement and administration services in all fields and modalities of engineering; (xii)participation in bidding and/or tender procedures, either public or private, in Brazil or abroad,individually or in a consortium, at any of phase, in connection with any activities included in theCompany's corporate purpose; (xiii) planning and execution of any activities related to and/orderived from those referred to in items (i) to (xii) above; (xiv) direct or indirect interest in the capitalof other entities whose corporate purpose is similar to that of the Company, as well as theorganization of consortiums.

Reorganization

At December 31, 2019 and 2018, the Company presented gross losses of R$2,576 – US$640 –COP2,096,013 and R$25,467 – US$6,573 – COP21,329,146, respectively. On December 30,2019, with a view to simplifying the corporate structure and consequently increasingcompetitiveness, profitability and scale, the Company increased its capital through the merger ofassets, rights and obligations of Camargo Corrêa Infra Participações S.A. (“CCI Part.”), which wasuntil then the parent of the Company (through a downstream merger), and of Camargo CorrêaInfra Projetos S.A. (“CCIP”), which was until then a related party also controlled by CCI Part., atthe total book value of R$268,600 – US$66,640 – COP218,551,668, as shown below.Management understands that this new leaner corporate structure with more profitable projectswill reverse the losses accumulated by the Company.


Notes to financial statements (Continued)December 31, 2019(In thousands of R$, COP and US$, unless otherwise stated)

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1. Operations (Continued)

Reorganization (Continued)

12/30/2019 12/30/2019CCIP CCI Part Total Total Total

R$ R$ R$ US$ COPCurrent assets: Cash and cash equivalents 88,880 255 89,135 22,114 72,526,444 Trade accounts receivable 76,763 - 76,763 19,045 62,459,723Inventory 4,483 - 4,483 1,112 3,647,681

Transactions with related parties 39,996 - 39,996 9,923 32,543,531 Assets available for sale 39 - 39 10 31,733 Other receivables 20,000 189 20,189 5,009 16,427,177

Noncurrent assets:Other receivables 636 - 636 158 517,494

Transactions with related parties 84,210 - 84,210 20,892 68,519,121 Investments (Note 10) 88,682 - 88,682 22,002 72,157,852 Property, plant and equipment (Note 11) 118,960 - 118,960 29,513 96,794,142 Right of use 3,243 - 3,243 805 2,638,731 Intangible assets 1 - 1 - 814

Current liabilities: Trade accounts payable 14,376 141 14,517 3,602 11,812,042 Loans and financing 6,289 - 6,289 1,560 5,117,168 Lease liabilities 3,152 - 3,152 782 2,564,687 Payroll, provisions and social contributions 6,585 44 6,629 1,645 5,393,816 Taxes payable 2,299 20 2,319 575 1,886,900

Advances from customers (Note 15) 153,712 - 153,712 38,135 125,070,789Transactions with related parties 21,993 205 22,198 5,507 18,061,839

Other obligations 152 - 152 38 123,678

Noncurrent liabilities: Loans and financing – long term 14,038 - 14,038 3,483 11,422,295 Transactions with related parties - 4,157 4,157 1,031 3,382,425

Deferred income and social contribution taxes 30,574 - 30,574 7,585 24,877,136

Net assets merged 272,723 (4,122) 268,600 66,640 218,551,668



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2. Presentation of the financial statements

The financial statements have been prepared in accordance with accounting practices adopted inBrazil, which encompass the corporate legislation and the standards, guidance and interpretationsissued by the Brazilian FASB (CPC) and approved by Brazil’s National Association of StateBoards of Accountancy (CFC), except for conversion of financial statements to Colombian pesos(COP) and US dollars (US$), as described in Note 3.17. The Company management presents allrelevant information of the financial statements and this information corresponds to that used bythe Company in its management, in line with OCPC 07, issued by the CPC.

The Company adopted all standards, revised standards and interpretations issued by CPCeffective at December 31, 2019.

The financial statements have been prepared on a historical cost basis, except for certainfinancial instruments, measured at fair value, as described below. The historical cost is generallybased on the fair value of the consideration paid in exchange for assets.

Management approved these financial statements for disclosure on March 30, 2020.

Estimates

The financial statements have been prepared under various measurement bases used inaccounting estimates. The accounting estimates involved in the preparation of the financialstatements were based on both objective and subjective factors and on management’s judgmentto determine the appropriate amount to be recorded in the financial statements.

Significant items subject to these estimates and assumptions include review of costs andrevenues from construction contracts, selection of useful lives and impairment of property, plantand equipment, measurement of financial assets at fair value and under the present valueadjustment method, credit risk analysis to determine the allowance for doubtful accounts,recognition/reversal of deferred income and social contribution taxes, as well as analysis of otherrisks to determine other provisions, including provision for contingencies.

The settlement of transactions involving these estimates may result in amounts significantlydifferent from those recorded in the financial statements due to uncertainties inherent in theestimate process. The Company reviews its estimates and assumptions at least once a year.



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3. Summary of significant accounting practices

The significant practices adopted were as follows:

3.1. Cash and cash equivalents and marketable securities

Cash equivalents consist of short-term investments maturing within 90 days, or withrepurchase commitments, promptly convertible into cash and with insignificant risks ofchange in value.

Marketable securities are represented by fixed income funds, exclusive funds anddebentures, classified at: (a) fair value through profit or loss or (b) amortized cost. Securitiesclassified at fair value have their effects recognized in profit or loss.

3.2. Trade accounts receivable and allowance for expected credit losses

These are stated at realizable values. They also include amounts not billed up to thereporting date of construction contracts, whose amounts are determined by the percentage-of-completion method.

They are recorded and held in the statement of financial position at the nominal value ofsecurities, adjusted to present value, when applicable. The allowance for expected creditlosses is recorded based on the evaluation of the impact on future expected credit losses,pursuant to CPC 48 – Financial Instruments.

3.3. Inventories

Inventories comprise construction materials measured at the average acquisition costs,which are lower than their realizable values.



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3. Summary of significant accounting practices (Continued)

3.4. Property, plant and equipment

Property, plant and equipment are stated at cost, less depreciation and impairment, whereapplicable. Depreciation is recognized based on the useful life of each asset using thestraight-line method or other systematic basis representing the time when economic benefitsare used. Assets based on straight-line useful life have the following annual rates: realestate - 4%; machinery and equipment, vehicles, IT equipment and other - 10% to 25%;furniture and fixtures - 10%; and leasehold improvements, according to contractual terms.The useful lives of property, plant and equipment are measured on an annual basis. TheCompany depreciates machinery and equipment based on the hours effectively used. Thisprocedure reflects the pattern of consumption of expected economic benefits. At December31, 2019, with the help of a specialized company, the Company reviewed the recoverableamount of assets and recognized a provision for impairment, as described in Note 11.

3.5. Investments in subsidiaries

Investments in subsidiaries in which the Company has significant influence are recordedunder the equity method.

Under the equity method, the investment is initially recorded at acquisition or buildup cost,and then adjusted for recognition of the Company's interest in profit or loss and othercomprehensive income of the investee.

Gains and losses on equity interest in investees’ profit or loss are presented in theCompany's statement of profit or loss as equity pickup.

After the equity method is applied, the Company determines whether recognizing additionalimpairment of its investment is required. At each reporting date, the Company determineswhether there is objective evidence of impairment of the investment in the subsidiary. Ifsuch evidence is identified, the Company calculates the impairment loss as the differencebetween the recoverable amount of the subsidiary and its carrying amount, and recognizessuch amount in the statement of profit or loss.

When there is loss of control over a subsidiary, the Company evaluates and recognizes theinvestment at fair value at that time, and the difference is recognized in profit or loss for theyear.



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3.6. Employee benefits

Benefits granted to the Company’s employees and managing officers include, in addition tofixed compensation (salaries, social security contributions (INSS), vacation pay and 13th

salary), variable compensation, such as profit sharing and bonus payments. These benefitsare recorded in profit or loss for the year when the Company has a liability accounted for onan accrual basis, as incurred.

3.7. Financial instruments

Financial assets and liabilities are recognized when the Company becomes a party to theircontractual provisions and are initially measured at fair value. Fair value is the amount forwhich an asset could be exchanged, or a liability settled, between knowledgeable andwilling parties on an arm's length basis. Transaction costs directly attributable to theacquisition or issue of financial assets and liabilities are accrued or deducted from the fairvalue of financial assets or liabilities, if applicable, after initial recognition, except forfinancial assets and liabilities recognized at fair value in the statement of profit or loss for theyear.

Financial assets

Financial assets are classified in the following specific categories: (a) fair value throughprofit or loss; (b) fair value through other comprehensive income; and (c) amortized cost.The classification depends on the nature and purpose of the financial assets and isdetermined upon initial recognition.

(a) Fair value through profit or loss

Financial assets are classified at fair value through profit or loss when they do not fallinto the categories of amortized cost or fair value through other comprehensive income.

As of December 31, 2019 and 2018, the Company had cash and cash equivalents andmarketable securities classified in this category.

(b) Fair value through other comprehensive income

Financial assets shall be measured at fair value through other comprehensive incomewhen the objective of the business model is achieved by receiving the expectedcontractual cash flows and selling the financial assets, composed exclusively ofprincipal and interest payments, and of sale of financial assets.



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3.7. Financial instruments (Continued)

Financial assets (Continued)

At December 31, 2019 and 2018, the Company did not have financial instrumentsclassified in this category.

(c) Financial assets at amortized cost

A financial asset shall be measured at amortized cost when the objective of thebusiness model is to maintain financial assets in order to receive contractual cash flowsuntil the end of the contract, consisting exclusively of payments of principal and intereston the principal amount outstanding.

At December 31, 2019 and 2018, the Company had accounts receivable and relatedparty transactions classified in this category.

Derecognition (write-off) of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similarfinancial assets) is derecognized when: a) the rights to receive cash flows from the assethave expired; b) the Company has transferred its rights to receive cash flows from the assetor has assumed an obligation to pay the received cash flows in full without material delay toa third party under an “pass-through” arrangement; and either (i) the Company hastransferred substantially all the risks and rewards of the asset, or (ii) the Company hasneither transferred nor retained substantially all the risks and rewards of the asset, but hastransferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or hasentered into a pass-through arrangement and has neither transferred nor retainedsubstantially all of the risks and rewards of the asset, an asset is recognized to the extent ofthe Company's continuing involvement. In that case, the Company also recognizes anassociated liability. The transferred asset and the associated liability are measured on abasis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset ismeasured at the lower of the original carrying amount of the asset and the maximumamount of consideration that the Company could be required to repay.



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Impairment test of financial assets

Expected credit losses are estimates weighted by the probability of credit losses based onhistorical losses and projections of related assumptions. ECLs are measured on one of thefollowing bases:

(a) 12-month ECLs: credit losses that result from default events that are possible within 12months after the reporting date.

(b) Lifetime ECLs: credit losses that result from default events that are possible over theexpected life of a financial instrument.

Financial liabilities

Financial liabilities are classified as "Financial liabilities at fair value through profit or loss" or"Other financial liabilities".

(a) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss are those held for trading ordesignated at fair value through profit or loss. Changes in fair value are recognized inprofit or loss for the year.

At December 31, 2019 and 2018, the Company did not have financial instrumentsclassified in this category.

(b) Amortized cost

Financial liabilities at amortized cost are those whose contractual cash flows areexclusively payments of principal and interest on the principal amount outstanding. Theeffective interest method is used to calculate the amortized cost of a financial liabilityand to allocate interest expenses during the corresponding period.

At December 31, 2019 and 2018, the Company had trade accounts payable andpayables to related parties, as well as loans and financing classified in this category.



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Net presentation of financial assets and liabilities

Financial assets and financial liabilities are presented net in the statement of financialposition if, and only if, there is a currently enforceable legal right to offset the recognizedamounts and there is an intention to settle on a net basis, or to realize the asset and settlethe liability simultaneously.

Derivative financial instruments

Derivatives are initially recognized at fair value on the contracting date and aresubsequently remeasured at fair value at the end of each year. Any gains or losses arerecognized in profit or loss immediately, unless the derivative is designated and effective asa "cash flow hedge"; in this case, recognition in profit or loss depends on the nature of thehedging relationship. The Company had no derivative financial instruments at December 31,2019 and 2018.

3.8. Construction contracts and onerous contracts

Service revenue is determined and recognized based on the development of eachconstruction work. Revenue comprises the initial amount agreed in the contract pluschanges resulting from additional requests, complaints and contractual incentive payments,provided that it is virtually certain that they will result in revenue and can be reliablymeasured.

Contract revenue is recognized in the statement of profit or loss based on the POC of eachproject, pursuant to CPC 47. The costs of each contract are recognized as profit or loss forthe period in which they are incurred, unless they determine an asset related to futurecontract activities.

The Company acts as the principal in its contracts, providing material and equipmentprocurement services (including direct billing), in accordance with contracts with itscustomers. The control of goods and services is the Company's responsibility under thecontract.



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3.8. Construction contracts and onerous contracts (Continued)

When profit or loss from a construction contract cannot be reliably estimated, its revenue isrecognized up to the amount of costs incurred as long as its recovery is probable. If it isprobable that total costs will exceed total contract revenue (characterizing an onerouscontract), the loss relating to the excess between contracted revenue and estimated totalcost is recognized immediately in profit or loss for the year in "Cost of services", matchedagainst "Other obligations".

The amounts received prior to the provision of the corresponding services are recorded inthe statement of financial position as liabilities in "Advances from customers". The amountsbilled or unbilled recorded based on the service performed per construction work, but not yetpaid by the customer, are recorded in the statement of financial position as an asset in"Trade accounts receivable".

This conclusion was obtained through the analysis of construction contracts in progress, aswell as the current procedures for revenue recognition.

3.9. Translation of foreign-currency balances and basis of translation of financialstatements of the subsidiary based abroad

The Company’s functional currency is the Brazilian Real (R$), which is also the currency forpreparation and presentation of the financial statements. Monetary assets and liabilitiesdenominated in foreign currency are translated into the functional currency (R$) using theexchange rate prevailing at the closing date.

Gains and losses resulting from the restatement of these assets and liabilities identifiedbetween the exchange rate prevailing on the transaction date and the year-end arerecognized as finance income or costs in the statement of profit or loss.

The assets and liabilities of the subsidiary based abroad, whose functional currency isdifferent from the Company’s presentation currency and that has administrative autonomy,are translated at the exchange rate prevailing at the reporting date. Income and expensesare translated at the average exchange rate for each year and equity is translated at thehistorical exchange rate for each change in equity. Gains and losses arising from changesin this investment abroad are recognized directly in equity, under accumulated othercomprehensive income in the “Equity adjustment” account, and will be recognized in profitor loss if such investment is disposed of or discontinued.



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3.9. Translation of foreign-currency balances and basis of translation of financialstatements of the subsidiary based abroad (Continued)

At December 31, 2019, the subsidiary based abroad is the following:

InvesteesFunctional

currency CountryCamargo Corrêa Infra Projetos Colombia Unit Colombian peso Colombia

At December 31, 2019, the exchange rate used for translation was R$0,001229, as disclosed by the Central Bank of Brazil.

3.10. Impairment of tangible assets

At the end of each year, the Company reviews its tangible assets with a finite useful life todetermine if there is any indication that such assets are impaired. If there is any suchindication, the recoverable amount of the asset is estimated for the purpose of identifyingthe need for provision for loss. When it is not possible to estimate the recoverable amount ofan asset individually, the Company calculates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of a calculated asset is lower than its carrying amount, thecarrying amount of the asset is reduced to its recoverable amount. Impairment loss isrecognized immediately in the statement of profit or loss.

3.11. Income and social contribution taxes

3.11.1. Current taxes

Income taxes include both income and social contribution taxes. Income tax iscalculated at a rate of 15%, plus a 10% surtax on taxable profit exceeding R$240over 12 months, whereas social contribution tax is computed at a rate of 9% ontaxable profit, both recognized on an accrual basis; therefore, additions to bookincome deriving from temporarily nondeductible expenses or exclusions fromtemporarily nontaxable income upon determination of current taxable profit generatedeferred tax assets or liabilities.

3.11.2. Deferred taxes

Deferred taxes arise from temporary differences at the reporting date between thetax bases of assets and liabilities and their carrying amounts. Deferred tax liabilitiesare recognized for all taxable temporary differences, except:



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3.11. Income and social contributions taxes (Continued)

3.11.2. Deferred taxes (Continued)

· When the deferred tax liability arises from the initial recognition of goodwill or anasset or liability in a transaction that is not a business combination and, at the timeof the transaction, affects neither the accounting profit nor taxable profit or loss.

· In respect of taxable temporary differences associated with investments insubsidiaries, when the timing of the reversal of the temporary differences can becontrolled and it is probable that the temporary differences will not reverse in theforeseeable future.

Deferred tax assets are recognized for all deductible temporary differences, thecarry forward of unused tax credits and any unused tax losses to the extent that it isprobable that taxable profit will be available against which the deductible temporarydifferences, and the carry forward of unused tax credits and unused tax losses canbe utilized, except:

· When the deferred tax asset relating to the deductible temporary difference arisesfrom the initial recognition of an asset or liability in a transaction that is not abusiness combination and, at the time of the transaction, affects neither theaccounting profit nor taxable profit (or taxable loss).

· In respect of deductible temporary differences associated with investments insubsidiaries, deferred tax assets are recognized only to the extent that it isprobable that the temporary differences will reverse in the foreseeable future andtaxable profit will be available against which the temporary differences can beutilized.

The carrying amount of deferred tax assets is reviewed at each reporting date andreduced to the extent that it is no longer probable that sufficient taxable profit will beavailable to allow all or part of the deferred tax asset to be utilized. Derecognizeddeferred tax assets are reviewed at each reporting date and are recognized to theextent that it has become probable that future taxable profits will allow the deferredtax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected toapply in the year when the asset is realized or the liability is settled, based on taxrates (and tax laws) that have been enacted at the reporting date.



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3.12. Basic/diluted earnings (loss) per share

These are calculated by dividing net income (loss) for the year by the average number ofoutstanding shares during each fiscal year, in accordance with CPC 41 - Earnings perShare.

3.13. Significant accounting judgments, estimates and assumptions

Judgments

The preparation of the Company’s financial statements requires management to makejudgments, estimates and assumptions that affect the reported amounts of revenues,expenses, assets and liabilities, and the disclosures of contingent liabilities at the reportingdate.

However, uncertainty about these assumptions and estimates could result in outcomes thatrequire a material adjustment to the carrying amount of assets or liabilities affected in futureperiods.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertaintyat the reporting date, that have a significant risk of causing a material adjustment to thecarrying amounts of assets and liabilities within the next financial year, are described below.

Impairment of nonfinancial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds itsrecoverable amount, which is the higher of its fair value less costs of disposal and its valuein use. The fair value less costs of disposal calculation is based on available data from salestransactions for similar assets or market prices less incremental costs of disposing of theasset. The Company engaged a specialized company for the purpose of measuring therecoverable amount of significant PP&E at the end of the year ended December 31, 2019.The study considered a fair value analysis based on asset replacement costs and marketvalue less costs to sell the asset.



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3.13. Significant accounting judgments, estimates and assumptions (Continued)

Estimates and assumptions (Continued)

Revenue recognition, margin of construction contracts and provisions for contracts

Construction contracts correspond to construction carried out, and gross revenue isrecognized in profit or loss based on the proportion of work performed through thestatement of financial position date and calculated by the proportion of costs incurred, asopposed to total estimated costs of the contract (POC), as set forth in CPC 47 – Revenuefrom Contracts with Customers.

When the review of estimated income from contracts indicates that total contract costsexceed total revenue, the estimated loss is immediately recognized as an expense in profitor loss for the year.

The estimated income from contracts is reviewed monthly over the contract period andrepresents the best estimate of future economic contract benefits, in addition to associatedrisks and obligations.

Taxes

There are uncertainties related to the interpretation of complex tax regulations and to theamount and timing of future taxable profits. Given the long-term nature and complexity ofexisting contractual agreements, differences between the actual results and theassumptions made, or future changes in such assumptions, could require futureadjustments to tax income and expenses already recorded.

Provisions for tax, civil and labor contingencies

The Company recognizes a provision for labor, civil and tax claims. Assessment of thelikelihood of loss includes analysis of available evidence, the hierarchy of laws, availablecase law, the most recent court decisions and their relevance in the legal system, as well asthe opinion of external legal advisors. Provisions are reviewed and adjusted consideringchanges in existing circumstances, such as the applicable statutes of limitation, tax auditconclusions, or additional exposures identified based on new matters or court decisions.



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3.13. Significant accounting judgments, estimates and assumptions (Continued)

Estimates and assumptions (Continued)

Provisions for tax, civil and labor contingencies (Continued)

The settlement of transactions involving these estimates may result in amounts significantlydifferent from those recorded in the financial statements due to uncertainties inherent intheir determination process. The Company reviews its estimates and assumptions on amonthly basis.

3.14. Consortia

According to CPC 19 (R2) - Joint Arrangements, interests in consortia are classified as jointarrangements with their assets, liabilities, revenues and expenses recognized line by line inasset and liability and profit or loss accounts, proportionally to the percentage of interest ineach consortium.

3.15. Consolidated financial statements

The Company opted not to prepare the consolidated financial statements, as permitted by CPC 36(R3) - Consolidated Financial Statements, since: (a) the Company is a wholly-owned subsidiary, andthe parent company has no objection; (b) there are no equity or debt instruments traded on the openmarket, nor is there an IPO progress; and (c) the parent company will publish the consolidatedfinancial statements in accordance with the CPC's accounting pronouncements.

3.16. New and revised standards and interpretations issued

The following new standards were approved and issued by the CPC, which came into forceand were effectively adopted as of January 1, 2019. Other standards and interpretationsapply for the first time in 2019, but have no impact on the Company's financial statements.

Management adopted the new pronouncements as described below:



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3.16. New and revised standards and interpretations issued (Continued)

CPC 06 (R2) - Leases

On January 1, 2019, the Company adopted CPC 06(R2)/NBC TG 06 (R3), which introducesa single model for lessees to account for leases in the statement of financial position. Alessee recognizes a right-of-use asset that represents its right to use the leased asset and alease liability that represents its obligation to make lease payments. Exemptions areavailable for short-term leases and low-value assets.

CPC 06 (R2) – Leases (Continued)

Leases in which the Company is a lessee

The Company recognized in assets (“Right of use in leases”) its lease contracts, mainlythose relating to real estate, machinery and equipment and vehicles.

What was previously treated as a rental expense is now recorded as amortization of “rightsof use” and interest on rental obligations is now disclosed as “Lease liabilities”.Consequently, EBITDA and operating income (expenses) were affected.

Transition

The Company applied CPC 06 (R2)/NBC TG 06 (R3) using the retrospective approach (itemC5(b) of the pronouncement), recognizing the cumulative effect of initially applying thispronouncement as an adjustment to the opening balance of accumulated losses in theamount of R$81, without the need to restate comparative information. In the transition, leaseliabilities were measured at the present value of the remaining payments, discounted at thelessees’ incremental borrowing rate (nominal rate). The lease contracts’ term is 1 to 3 yearson average.

The actual payment flows were estimated gross of taxes and the right-of-use assets weremeasured at an amount equal to the lease liability at present value.

In accordance with CPC 06 (R2)/NBC TG 06(R3), in measuring and remeasuring its leaseliabilities and the right of use, respectively, the Company used the discounted cash flowmethod without considering future projected inflation in the flows to be discounted.



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CPC 06 (R2) – Leases (Continued)

Transition (Continued)

The Company applied a practical expedient with respect to the definition of lease contractsduring transition, i.e. it applied CPC 06 (R2)/NBC TG 06 (R3) to all contracts entered intobefore January 1, 2019 that were identified as leases in accordance with CPC 06 (R1) andICPC 03.

The incremental borrowing rate (discount) used to calculate the present value of contractswas based on the projected CDI + current spread (nominal rate).

The reconciliation of the effects of the adoption of this accounting standard on the statementof financial position and changes in 2019 in the right of use and lease liabilities is as follows:

Right of use in leases

CategoryFirst-timeadoption Merger Amortization (a)

Closingbalance

Properties 294 776 (81) 989IT equipment 39 - (5) 34Machinery and equipment 4,774 1,917 (1,669) 5,022Vehicles - 550 - 550Total – R$ 5,107 3,243 (1,755) 6,595Total – COP 4,155,411 2,638,731 (1,427,990) 5,366,151Total – US$ 1,267 805 (435) 1,636

CategoryFirst-timeadoption Merger Payments Interest (b)

Closingbalance

Properties 283 745 (87) 2 943IT equipment 39 - (5) - 34Machinery and equipment 4,785 1,881 (1,745) 36 4,957Vehicles - 526 - - 526Total – R$ 5,107 3,152 (1,837) 38 6,460Total – COP 4,155,411 2,564,687 (1,494,711) 30,919 5,256,306Total – US$ 1,267 782 (456) 9 1,603

R$ COP US$Classified as current 6,349 5,165,989 1,575Classified as noncurrent 111 90,317 28



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ICPC 22 - Uncertainty Over Income Tax Treatments

The Interpretation addresses the accounting for income taxes when tax treatments involveuncertainty that affects the application of CPC 32 and does not apply to taxes or leviesoutside the scope of CPC 32, nor does it specifically include requirements relating tointerest and penalties associated with uncertain tax treatments. The Interpretationspecifically addresses the following:

· Whether an entity considers uncertain tax treatments separately.· The assumptions an entity makes about the examination of tax treatments by taxationauthorities.· How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unusedtax credits and tax rates.· How an entity considers changes in facts and circumstances.

The Company management determines whether to consider each uncertain tax treatmentseparately or together with one or more other uncertain tax treatments and considers theapproach that better predicts the resolution of the uncertainty.

The Company management applies significant judgment in identifying uncertainties overincome tax treatments. Considering that the Company management operates in a complexmultinational environment, it assessed whether the interpretation had an impact on itsindividual financial statements.

Considering the aspects of ICPC 22, the Company management reviewed the judgmentsmade in calculating income and social contribution taxes and concluded that no uncertaintax treatments were used in its financial statements, since all the procedures adopted forpayment of income taxes are supported by the applicable legislation and case laws.

A series of new standards will be effective for annual periods beginning after January 1,2020. The Company did not adopt those standards in preparing these financial statements.

The following amended standards and interpretations are not expected to have a significantimpact on the Company's financial statements.

- Amendments to references to the conceptual framework in the IFRS.- Definition of a business (amendments to CPC 15/IFRS 3).- Definition of material (amendments to CPC 26/IAS1 and 23/IAS 8).- IFRS 17 Insurance Contracts.



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3.17. Convenience Conversion to US Dollars (US$) and Colombian Pesos (COP)

The financial statements were prepared originally in Brazilian Reais. For convenience of theusers, the financial statements of December 31, 2019 were translated to US dollars (US$)and Colombian pesos (COP), at the exchange rate of R$4,031 for US$1.00 andR$0.001229 for COP1.00, as of December 31, 2019. The purpose of translation is only forconvenience of the users and should not be read as a declaration that the values inBrazilian Reais could be translated to US dollars and Colombian pesos or in any othercurrency.



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4. Cash and cash equivalentsCash and cash equivalents

2019 2019 2019 2018US$ COP R$ R$

Cash and banks 83 272,579 335 2,913Exclusive fund - - - 460Fixed income fund 6,904 22,641,172 27,826 -Bank Deposit Certificates (CDBs) 16,504 54,128,560 66,524 4,133Total 23,491 77,042,311 94,685 7,506

At December 31, 2019, investments in CDBs held with prime Brazilian financial institutions had areturn of 70% to 98.75% of the Interbank Deposit Certificate (CDI) (70% at December 31, 2018).

At December 31, 2019, the exclusive and fixed-income funds had a return of 70% to 100% (50%to 99.65% at December 31, 2018) of the CDI, and comprise substantially fixed-incomeinvestments, National Treasury Bills and Financial Treasury Bills.

The exclusive fund is administered by Banco Itaú, which invests in fixed income, governmentbonds (SELIC Treasury (LFT) and Fixed Treasury (LTN)), debentures and financial bills of first-tier banks.

5. Trade accounts receivable

Breakdown of accounts receivable

2019 2019 2019 2018US$ COP R$ R$

Service provision – domestic – unbilled 35,969 117,962,571 144,976 26,721Service provision – domestic – billed balances 10,002 32,804,719 40,317 7,908Subtotal 45,971 150,767,290 185,293 34,629Allowance for expected credit losses (281) (920,260) (1,131) (1,131)Total 45,690 149,847,030 184,162 33,498

Aging list of accounts receivable

2019 2019 2019 2018US$ COP R$ R$

Unbilled 35,969 117,962,571 144,976 26,721Falling due 6,825 22,382,423 27,508 6,093Overdue - 0 to 30 days 2,183 7,158,666 8,798 77Overdue - 31 to 60 days 63 207,486 255 55Overdue - 61 to 90 days 105 345,810 425 232Overdue - 91 to 180 days 2 7,323 9 899Overdue - Above 181 days 824 2,703,011 3,322 552Total 45,971 150,767,290 185,293 34,629



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5. Trade accounts receivable (Continued)

Changes in allowance for expected credit losses

2019 2019 2019 2018US$ COP R$ R$

Balances at beginning of year (281) (920,260) (1,131) -Recognition (Note 17) - - - (1,131)Balances at end of year (281) (920,260) (1,131) (1,131)

6. Inventories2019 2019 2019 2018US$ COP R$ R$

Sundry materials used in construction 6,146 20,157,852 24,774 2,172Total 6,146 20,157,852 24,774 2,172

7. Transactions with related partiesCurrent assets Noncurrent assets Current liabilities Noncurrent liabilities2019 2018 2019 2018 2019 2018 2019 2018

Services provided abroadConsórcio CCC Ituango 105 - - - - - - -

Reimbursement of costsConstruções e Comércio Camargo Corrêa S.A. 6,570 3,160 - - - - - -Instituto Camargo Correa 10 - - - - - - -Camargo Corrêa Naval Part. Ltda. - 9 - - - - - -

Dividends receivableCamargo Corrêa Infra Projetos S.A. Colombia Unit 36,611 - - - - - - -

Intercompany loanConstruções e Comércio Camargo Corrêa S.A. (a) 32,535 - 6,159 65,617 - - - -Camargo Corrêa Infra Projetos S.A. Colombia Unit (b) - - - - - - 40,935 17,569Camargo Corrêa Infra Projetos S.A. (b) - - - - - - - 17,559

Accounts payableCamargo Corrêa Infra Projetos S.A. - - - - - 2,801 - -Consórcio Constr. São Lourenço - - - - - 180 - -Camargo Corrêa Naval Part. Ltda. - - - - 3 - - -Total – R$ 75,831 3,169 6,159 65,617 3 2,981 40,935 35,128Total – COP 61,701,383 5,011,391 2,441 33,307,567Total – US$ 18,813 1,528 1 10,156

(a) These represent loan agreements maturing in December 2020, bearing interest of 3% p.a.

(b) These represent intercompany loan agreements with fixed maturity, with interest of 3.5% p.a. + Libor with Camargo Corrêa InfraProjetos S.A. Colombian unit and interest of 3% p.a. with Camargo Corrêa Infra Projetos S.A. (merged on December 30, 2019).



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7. Transactions with related parties (Continued)

Revenue Expense2019 2018 2019 2018

Construction servicesCCR - Conces. Sist. Anhanguera-Bandeirantes - 15,967 - -Consórcio Const. São Lourenço - 16,325 (1) -

Administrative servicesConstruções e Comércio Camargo Corrêa S.A. - 4,746 (6,376) -Camargo Corrêa Infra Projetos S.A. – Colombia Unit - 539 - -Camargo Corrêa Infra Projetos S.A. - - - (30)Camargo Corrêa Energia e Industria S.A. - - - (20)Camargo Corrêa Naval Participações Ltda 32 53 - -

Interest on intercompany loan (Note 18)Construções e Comércio Camargo Corrêa S.A. 1,403 189 - -Camargo Corrêa Infra Projetos S.A. - Colombia Unit - - (2,063) (167)Camargo Corrêa Construções e Participações S.A. - 2,433 - -Camargo Corrêa Infra Projetos S.A. - - - (203)

Total – R$ 1,435 40,252 (8,440) (420)Total – COP 1,167,616 (6,867,372)Total – US$ 356 (2,094)

Management compensation is disclosed in Note 19.

8. Assets available for sale

These represent equipment and property, plant and equipment for trading. For the year endedDecember 31, 2019, the Company reclassified the amount of de R$2,591 – US$643 –COP2,108,218 (R$3,764 in 2018) to PP&E, see Note 11.

On December 30, 2019, the balance of R$39 – US$10 – COP31,733 was merged as mentionedin Note 1.

Balance at December 31, 2018 4,333Merger (Note 1) 39Transfer to PP&E (Note 11) (2,591)Balance at December 31, 2019 – R$ 1,781Balance at December 31, 2019 – COP 1,449,146Balance at December 31, 2019 – US$ 442



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9. Other receivables

2019 2019 2019 2018US$ COP R$ R$

Advances to suppliers 585 1,918,633 2,358 1,804Withholding tax 1,977 6,484,947 7,970 996Social contribution tax 11 36,615 45 595Service Tax (ISS) 1,025 3,362,083 4,132 -Social Security Tax on Gross Revenue (CPRB) 314 1,030,919 1,267 -Accounts receivable from consortia (a) 1,547 5,074,044 6,236 4,863Accounts receivable from third parties (b) 1,203 3,944,670 4,848 2,446Accounts receivable due to disposal of PP&E 710 2,327,095 2,860 75Contractual retentions with customers 418 1,371,033 1,685 1,291Prepaid vacation pay 64 208,299 256 347Prepaid expenses (c) 2,191 7,185,517 8,831 1,167Others 332 1,091,133 1,341 470Subtotal 10,377 34,034,988 41,829 14,054

Allowance for expected credit losses (Note 19) (a) (761) (2,495,525) (3,067) (3,067)Total 9,616 31,539,463 38,762 10,987

Classified in current assets 9,051 29,685,110 36,483 10,498Classified in noncurrent assets 565 1,854,353 2,279 489

9,616 31,539,463 38,762 10,987

(a) At December 31, 2019, this refers to advances of contributions to consortia in excess of the percentage of interest held by the Company, mainly toCorredor Bileo Soares R$1,604 – US$398 – COP1,305,126,Saneamento Billings R$410 – US$102 – COP333,605, Metro Linha 17 R$349 – US$87– COP283,971 and Terminal de Itaquera R$3,831 – US$950 – COP3,117,168, for which an allowance for expected credit losses had beenrecognized.

(b) These refer to loan agreements with third parties bearing interest of 9,2% p.a.

(c) Refer substantially to engineering insurance policies.



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10. InvestmentInvestee's data

Total equity interest(%) Equity Net income Equity adjustment Equity pickup Investment balance

12/31/201912/31/201812/31/2019 12/31/2018 12/31/2019 12/31/2018 12/31/2019 12/31/2018 12/31/2019 12/31/2018 12/31/2019 12/31/2018

SubsidiaryCamargo Corrêa Infra Projetos S.A. –

Colombia Unit (a) and (b) 100,00 - 88,591 - 91 - - - 91 - 88,591 -

Total – R$ - - 91 - 88,591 -Total – COP - 74,044 72,083,808Total – US$ - 23 21,979

Classified in noncurrent assets – Investment – R$ 88,591 -Classified in noncurrent assets – Investment – COP 72,083,808Classified in noncurrent assets – Investment – US$ 21,979

Changes in investments accounted for under the equity method:

US$ COP R$Balance at December 31, 2018 - - -Merger of investment (Note 1) 22,002 72,157,852 88,682Equity pickup (after merger) (23) (74,044) (91)Closing balance at December 31, 2019 21,979 72,083,808 88,591

(a) For information on the investment merger, see Note 1,

(b) Camargo Corrêa Infra Construções S.A. has an indirect interest of 55% in Consórcio CCC Ituango (the “Consortium”) located in Colombia, which is engaged in the construction in the Ituango HydroelectricPower Plant. The deadline for the construction work completion was December 28, 2018. However, between April and May 2018, there were serious incidents that resulted in the obstruction of the Cauca riverdiversion tunnel, causing water impoundment, which suspended the originally engaged works. The Colombian Environmental Agency suspended the environmental license and halted the contractual term ofthis project; however, it allowed the Consortium to perform the contingency works to mitigate the effects of the incident until June 2019, which were duly formalized through contractual amendments (AMBs)entered into with the contracting party. From July 2019, the Consortium obtained a contractual amendment to perform the stabilization works until June 2020. Additionally, the Consortium has been makingefforts to assess, meet and correct the damages caused as well as any services required to complete the work.On November 8, 2019, the Office of the Comptroller General of Colombia initiated the fiscal responsibility investigation process in connection with the facts relating to the tunnel obstruction, involvingindividuals and companies related to the Ituango Hydroelectric Power Plant project, in the approximate amount of R$5 billion (for alleged destruction of investment value and for loss of profits). Up to now, theConsortium has been questioned only about the execution of discharge gallery construction works, since the environmental licenses are the responsibility of Hidro Ituango S.A. E.S.P and Empresas Públicasde Medellin. The Consortium's legal advisors evaluated this issue and consider the likelihood of loss remote and that there is no relationship between the discharge gallery works and the tunnel obstruction; intheir opinion, the Office of the Comptroller General of Colombia must prove the existence of intentional misconduct or gross fault as well as that these were the cause of the disputed loss.



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11. Property, plant and equipment2019 2018

Accumulated Impairment Residual ResidualCost depreciation cost cost

Machinery and equipment 387,918 (174,908) (8,201) 204,809 132,754Vehicles 160,553 (69,506) (4) 91,043 51,195IT equipment and others 2,664 (551) - 2,113 24Furniture and fixtures 1,014 (48) - 966 4Construction in progress 12,168 - - 12,168 914Total – R$ 564,317 (245,013) (8,205) 311,099 184,891Total – COP 459,167,616 (199,359,642) (6,676,159) 253,131,814Total – US$ 140,005 (60,787) (2,036) 77,182

Changes in PP&E are as follows:

US$ COP R$Balance at December 31, 2017 28,996 95,100,893 116,879Additions 522 1,712,775 2,105Increase through capital contribution 19,340 63,427,177 77,952Write-offs (1,779) (5,834,825) (7,171)Depreciation (517) (1,694,060) (2,082)Provision for impairment (Note 19) 242 792,514 974Transfer to intangible assets - (1,627) (2)Transfer to "assets held for sale" (Note 7) (934) (3,062,653) (3,764)Balance at December 31, 2018 45,870 150,440,194 184,891Additions 5,728 18,785,191 23,087Merger of assets (Note 1) 29,513 96,794,142 118,960Write-offs (2,195) (7,197,722) (8,846)Depreciation (2,006) (6,580,146) (8,087)Provision for impairment (Note 19) (367) (1,204,231) (1,480)Transfer to intangible assets (4) (13,832) (17)Transfer to "assets held for sale" (Note 8) 643 2,108,218 2,591Balance at December 31, 2019 77,182 253,131,814 311,099

12. Payroll, vacation and charges payable

2019 2019 2019 2018US$ COP R$ R$

Accrued vacation pay and social charges 4,046 13,269,325 16,308 3,977Social Security Tax (INSS) 1,714 5,621,644 6,909 793Withholding Tax on salaries 921 3,021,969 3,714 1,309Unemployment Compensation Fund (FGTS) 454 1,487,388 1,828 362Provision for profit sharing 2,786 9,135,883 11,228 1,259Salaries payable 2,180 7,148,088 8,785 87Others 121 398,697 490 102

12,222 40,082,994 49,262 7,889



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13. Loans and financing

Modality Maturity Interest rate 12,31,2019 12,31,2019 12,31,2019 12,31,2018US$ COP R$ R$

FINAME 2024 3% to 10% p.a. / TJLP 8,464 27,759,967 34,117 20,080CCB 2023 3% to 5% p.a. + 100% CDI 6,877 22,554,923 27,720 -Total 15,341 50,314,890 61,837 20,080

Portion classified as current 4,840 15,873,881 19,509 6,196Portion classified as noncurrent 10,501 34,441,009 42,328 13,884

FINAME - Government Fund for Financing of Industrial Machinery and Equipment.CCB - Bank Credit Note.TJLP – Long-Term Interest Rate. Applicable rate in 2019 of 5.57% (6.98% in 2018).

On December 30, 2019, the balance of R$20,327 was merged as mentioned in Note 1.

At December 31, 2019, the aging list of noncurrent portions is as follows:

US$ COP R$2021 5,591 18,336,046 22,5352022 2,476 8,121,237 9,9812023 2,384 7,818,552 9,6092024 50 165,174 203Total 10,501 34,441,009 42,328

Guarantees

In order to guarantee financing under the FINAME/BNDES modality, the equipment acquired weregiven as collateral.

In the above-mentioned loans and financing, there are no contractual clauses that requirecovenants.



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14. Current and deferred income and social contribution taxes

a) Reconciliation of income and social contribution taxes2019 2019 2019 2018US$ COP R$ R$

Loss before income and social contribution taxes (15,325) (50,260,374) (61,770) (75,528)Rates (15% for income tax, plus 10% surtax, and 9% for social contribution tax) 34% 34% 34% 34%Income and social contribution taxes at statutory rates 5,211 17,088,527 21,002 25,680Adjustments to determine effective income and social contributions taxes:

Nondeductible donations - - - (209) Consortium expenses (14) (45,686) (56) (28) Executive board fees (30) (98,893) (122) - Other nondeductible expenses (6) (18,388) (23) (10) Others (277) (909,913) (1,118) (59)

4,884 16,015,647 19,683 25,374

Current income and social contribution tax expenses (237) (777,868) (956) -Deferred income and social contribution tax credits 5,120 16,793,328 20,639 25,374

b) Deferred income and social contribution taxes2019 2019 2019 2018US$ COP R$ R$

Assets:Income and social contribution tax losses 10,334 33,892,596 41,654 26,679Temporary differences:

Provisions for third-party services 1,714 5,621,644 6,909 1,768Provision for profit sharing 947 3,106,591 3,818 428

Provision for contingencies 108 354,760 436 33 Allowance for doubtful accounts (Note 17) 354 1,161,920 1,428 1,428 Impairment adjustments - Law No. 11638/07 692 2,270,138 2,790 1,776 Others 240 781,122 960 -

Noncurrent assets 14,389 47,188,771 57,995 32,112

Liabilities:Unrealized profits - government agencies 272 890,968 1,095 291Effects of the adoption of IN-1771/17 – direct billing 2,679 8,785,191 10,797 -

PP&E useful life difference 13,796 45,247,356 55,609 31,392Noncurrent liabilities 16,474 54,923,515 67,501 31,683

Net balance in noncurrent assets - - - 429Net balance in noncurrent liabilities 2,358 7,734,744 9,506 -

The realization of deferred income and social contribution taxes has an expected term of less thanten years, according to economic or financial realization. At December 31, 2019, deferred taxesinclude CCIP's merged balances as shown in Note 1.



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15. Advances from customers

2019 2019 2019 2018US$ COP R$ R$

Advances from customers – IN 21/79 (*) 37,066 121,563,059 149,401 261Advances from customers 2,659 8,720,098 10,717 -Total 39,725 130,283,157 160,118 261

(*) The Company recognizes amounts received before performing the corresponding services, which arerecorded in POC contracts as advances from customers. In 2019, they include works in progress of thecompanies merged during the year, totaling R$153,712 – US$38,135 – COP125,070,789 (Note 1), mainly:Transmission Line Lot 18 (R$123,715 – US$30,693 – COP100,663,141), Transmission Line Lot 21(R$8,864 – US$2,199 – COP7,212,368), Transmission Line Lot (R$5,592 – US$1,387 – COP4,550,041) ,PBTE-Piratininga Bandeirantes (R$4,803 – US$1,192 – COP3,908,055), Consórcio Metro Linha 17(R$3,664 – US$909 – COP2,981,286) and Consórcio BRT Salvador (R$2,564 – US$636 – COP2,086,249).

16. Provision for tax, labor, civil and other contingencies

The Company has lawsuits arising from the ordinary course of business, involving labor, civil andtax claims. The lawsuits involve tax delinquency notices, labor claims referring to overtimedifferences and charges on severance pay and other claims whose required amounts or taxesmay not reflect what will be defined in the final sentence . Based on the opinions of its legaladvisors, analysis of lawsuits and experience regarding amounts claimed, the Company recordeda provision of R$1,211 – US$300 – COP985,354 (R$97 at December 31, 2018) consideredsufficient to cover probable losses for ongoing lawsuits.

At December 31, 2019, the Company has claims classified as possible losses for which noprovisions for contingencies have been recorded: R$4,375 –US$1,085 – COP3,559,805 (R$315at December 31, 2018) in labor claims, referring to joint liability, differences in overtime andeffects on severance pay; R$831 – US$206 – COP676,159 (R$659 at December 31, 2018) in taxclaims, substantially related to Service Tax (ISS); and R$918 – US$228 – COP746,949 in civilclaims, referring substantially to indemnities for property damages and pain and suffering.



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17. Equity

Capital

At December 31, 2019, the Company capital totals R$525,315 – US$130,328 – COP427,432,872(R$259,710 at December 31, 2018), divided into 28,226,525 registered common shares, with nopar value, in 2019 and 2018.

On December 30, 2019, the Company absorbed the net assets of the merger of Camargo CorrêaInfra Projetos S.A. and Camargo Corrêa Infra Participações S.A. at the book value of R$268,600– US$66,640 – COP218,551,668 (Note 1), of which R$261,605 – US$64,905 – COP212,860,049as a capital increase approved at the Annual General Meeting (AGM) held on that date, andR$6,995 – US$1,735 – COP5,691,619 as capital reserve referring to profit or loss of the mergedcompanies for the period from December 1 to December 30, 2019, since the capital increase wasbased on November 30, 2019. The use of the capital reserve will be decided at the next AGM, OnApril 1, 2019, the future capital contribution made by shareholder Camargo Correa InfraParticipações S.A., amounting to R$4,000 – US$992 – COP3,254,679, was capitalized.

Capital reserve

At December 31, 2019, R$6,995 – US$1,735 – COP5,691,619 were allocated to capital reserve.

Legal reserve

Recorded at the proportion of 5% of net income for the year, if any, subject to the limit establishedby law, At December 31, 2019 and 2018, the Company did not recognize reserves due to lossesfor the years.

Dividends

Shareholders are entitled to minimum dividends of 25% of adjusted net income for each fiscalyear, as defined in the Articles of Incorporation and the Brazilian Corporation Law. At December31, 2019 and 2018, the Company did not recognize dividends due to losses for the years.

Future capital contribution

On April 1, 2019, the future capital contribution made by shareholder Camargo Correa InfraParticipações S.A., amounting to R$4,000 – US$992 – COP3,254,679, was capitalized.

Loss per share – in Reais

The reconciliation of net loss with amounts used to calculate basic loss per share is as follows:



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17. Equity (Continued)

Loss per share – in Reais (Continued)

2019 2019 2019 2018US$ COP R$ R$

NumeratorAllocation of net loss for the year to shareholders (10,444) (34,244,914) (42,087) (50,154)Denominator Weighted average number of shares 28,226,525 28,226,525 28,226,525 27,326,370Basic and diluted loss per share – in Reais (0.37) (1,213.22) (1,49) (1,84)

The Company has no convertible debt or stock options granted that could dilute earnings (loss)per share and presents net loss; accordingly, diluted loss is the same as basic loss.

18. Revenue2019 2019 2019 2018US$ COP R$ R$

Gross service revenue – domestic (*) 63,167 207,166,802 254,608 124,598Deductions from revenue

PIS and COFINS(**) (1,794) (5,883,645) (7,231) (4,677)ISS(**) (2,469) (8,096,827) (9,951) (4,140)Social Security Contribution (**) - - - (748)

(4,263) (13,980,472) (17,182) (9,565)Total 58,904 193,186,330 237,426 115,033

(*) The Company acts as the principal in its contracts, providing material and equipment procurement services (including direct billing), in accordance withcontracts with its customers. The control of goods and services is the Company's responsibility under the contract.

(**) The Company recognizes taxes levied on revenues based on prevailing tax rates and on an accrual basis, including PIS/COFINS, ISS and SocialSecurity Contribution.

19. Information on the nature of costs and expenses recognized in the statementof profit or loss

The Company presented its statement of profit or loss classifying expenses based on theirfunction. Information on the nature of such expenses recognized in the statement of profit or lossis as follows:



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19. Information on the nature of costs and expenses recognized in the statementof profit or loss (Continued)

2019 2019 2019 2018US$ COP R$ R$

Provision for labor, tax and civil contingencies (312) (1,015,459) (1,248) (59)Depreciation and amortization (2,009) (6,589,097) (8,098) (2,103)Amortization - right of use (435) (1,427,990) (1,755) -Rental expenses and condominium fees (2,730) (8,953,621) (11,004) (8,608)Insurance expenses (307) (1,007,323) (1,238) (1,095)Travel expenses (1,468) (4,815,297) (5,918) (2,733)Raw materials and materials (*) (18,891) (61,956,062) (76,144) (39,450)Allowance for expected credit losses on other receivables (Note 9) - - - (3,067)Allowance for expected credit losses on accounts receivable (Note 5) - - - (1,131)Reversal (set up) of provision for impairment (Note 11) (367) (1,204,231) (1,480) 974Management compensation (Note 7) (160) (523,190) (643) -Salaries and employee benefits (29,171) (95,670,464) (117,579) (71,219)Third-party services (15,921) (52,216,436) (64,174) (59,698)Sale of property, plant and equipment (727) (2,383,238) (2,929) (2,995)Other expenses (378) (1,240,846) (1,525) (2,192)Other revenues 56 182,262 224 187Total (72,820) (238,820,992) (293,511) (193,189)

Cost of services (59,544) (195,282,343) (240,002) (140,500)General and administrative expenses (12,295) (40,322,213) (49,556) (44,836)Other operating expenses, net (981) (3,216,436) (3,953) (7,853)

(72,820) (238,820,992) (293,511) (193,189)

(*) The Company acts as the principal in its contracts, providing material and equipment procurement services (including direct billing), in accordance withcontracts with its customers. The control of goods and services is the Company's responsibility under the contract.

20. Finance income (costs)2019 2019 2019 2018US$ COP R$ R$

Finance incomeFinancial yield 148 485,761 597 897Interest on intercompany loan (Note 7) 348 1,141,579 1,403 2,622Others 67 220,504 271 51

563 1,847,844 2,271 3,570Finance costs

Interest on loans (200) (657,445) (808) (818)Interest on intercompany loan (Note 7) (512) (1,678,600) (2,063) (370)Bank charges (20) (66,721) (82) (61)Fine on obligations (4) (14,646) (18) (15)Tax on Financial Transactions (IOF) (319) (1,044,752) (1,284) (216)Present value adjustment of lease liabilities (Note 3,16) (9) (30,919) (38) -Other finance costs (287) (937,348) (1,152) (1)

(1,351) (4,430,431) (5,445) (1,481)

Foreign exchange difference, net (*) (600) (1,969,081) (2,420) 539

Finance income (costs), net (1,388) (4,551,668) (5,594) 2,628

(*) The foreign exchange difference refers to intercompany loan agreements with the Colombia Unit amounting to USD10,2 MM (see Note 7).



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21. Insurance

At December 31, 2019 and 2018, the Company had insurance covering several risks, such as:engineering risks, construction, installation and assembly, civil liability and property damage,among others.

2019 2019 2019 2018US$ COP R$ R$

Sundry risks 4,962 16,273,393 20,000 -Property damage 17,092 56,055,330 68,892 13,118Engineering risk 406,048 1,331,699,756 1,636,659 495,622Civil liability 41,088 134,754,272 165,613 114,660

The scope of our auditors’ work does not include expressing an opinion on the sufficiency of theinsurance coverage, which was determined by the Company management and deemed sufficientby it to cover any losses.

22. Employee benefits

The Company has a private pension plan of the defined contribution type and, for the year endedDecember 31, 2019, the contribution amounted to R$644 – US$160 – COP524,003 (R$496 atDecember 31, 2018), recorded in "Payroll, provisions and social contributions".

23. Financial instruments

23.1. Policy for taking out derivative financial instruments

Due to the financial obligations assumed by the Company, following the guidelinesestablished by the Board of Directors, derivative financial instruments may be taken out tomitigate currency and interest rate risks assumed due to the transactions, in line with theexposure levels associated with those risks. As mentioned in Note 3.8, at December 31,2019, the Company did not have any derivative financial instruments.

23.2. Financial instruments by category

The main financial instruments and their amounts stated in the financial statements, bycategory, are described below.

The carrying amounts of such financial instruments are as follows:



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23. Financial instruments (Continued)

23.2. Financial instruments by category (Continued)

Fair valuehierarchy

Financialinstruments by

category 2019 20182019 2019

US$ COP R$ R$Financial assets

Cash equivalents (Note 4) 2Fair value throughprofit or loss 23,491 77,042,311 94,685 7,506

Accounts receivable - billed (Note 5) 2 Amortized cost 10,002 32,804,719 40,317 7,908Transactions with related parties(Note 7) 2 Amortized cost 20,341 66,712,774 81,990 68,786

Financial liabilitiesTrade accounts payable 2 Amortized cost 9,864 32,349,878 39,758 16,644Loans and financing (Note 13) 2 Amortized cost 15,341 50,314,890 61,837 20,080Transactions with related parties(Note 7) 2 Amortized cost 10,157 33,310,008 40,938 38,109

For the determination of fair values of financial instruments and investments measured atfair value through profit or loss, at the end of each year, the Company calculates theseamounts based on information available in the futures market, in addition to consultingfinancial institutions with which the transactions were entered into.

There are no significant differences between the carrying values and fair values of thefinancial instruments.

Fair value hierarchy

The Company uses the following hierarchy to determine and disclose the fair value offinancial instruments through the measurement technique:

Level 1: prices quoted (without adjustments) in active markets for identical assets orliabilities;

Level 2: other techniques for which all inputs that have a material effect on the recorded fairvalue are observable, either directly or indirectly;

Level 3: techniques using inputs that have a material effect on the fair value recorded thatare not based on observable market data.

For the year ended December 31, 2019, there were no transfers between Level 1 and Level2 fair value measurements or transfers between Level 3 and Level 2 fair valuemeasurements. The Company uses Level 2 of the fair value hierarchy, as defined by CPC39.



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23.3. Exposure to currency risks

The main balance denominated in foreign currency represented by the US dollar is asfollows:

2019 2019 2019 2018US$ COP R$ R$

AssetsTransactions with related parties Camargo Corrêa Infra Projetos S.A. Colombia Unit 9,083 29,789,260 36,611 -Total assets exposed 9,083 29,789,260 36,611 -

LiabilitiesTransactions with related parties Camargo Corrêa Infra Projetos S.A. Colombia Unit 10,156 33,307,567 40,935 17,569Total liabilities exposed 10,156 33,307,567 40,935 17,569Net exposure 1,073 3,518,307 4,324 17,569

23.4. Exposure to interest rate risks

The Company is exposed to floating interest rates and inflation indexes mainly related toCDI and SELIC fluctuations, Interest rates on short-term investments are mostly related toCDI fluctuation. These positions are shown below:

2019 2019 2019 2018US$ COP R$ R$

AssetsCash equivalents and marketable securities

CDI 23,408 76,769,732 94,350 4,593

LiabilitiesLoans and financing

TJLP (a) 320 1,048,007 1,288 205CDI 6,877 22,554,923 27,720 -

(a) The other loans and financing are pegged to fixed income or CDI,

23.5. Sensitivity analysis

The sensitivity analysis of financial instruments, of changes in the Company's relevantassets and liabilities and of those exposed to fluctuations in the CDI, TJLP and in the USdollar is as follows:

Transaction Scenario 1 Scenario 2 Scenario 3

Exposure to variable ratesCash equivalents and marketable securities - CDI/SELIC 3,020 2,265 1,510FINAME - TJLP 69 86 103Related parties - Libor 632 790 947Related parties - US$ (707) 197 1,102



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23.5. Sensitivity analysis (Continued)

Scenario 1 considers the following:· CDI: the Futures and Commodities Exchange (BMF) curve as of the reporting

date (12/31/2019), considering the 360-day vertex of the curve, calculating netassets and liabilities.

· Libor: 12-month Libor (12/31/2019)· TJLP: Based on TJLP BNDES + IPCA projection by Focus at 12/31/2019

Due to the Company's position, scenario 2 considers a rate devaluation in relation toscenario 1 of 25% and scenario 3 a devaluation of 50%,

23.6. Liquidity risk

The Company's liquidity depends mainly on cash from operating activities, shareholders’contributions and loans and financing from financial institutions. Liquidity risk managementconsiders the assessment of liquidity requirements to ensure that the Company hassufficient cash to meet its capital and operating expenses, as well as to pay its debts.

24. Events after the reporting period

At the beginning of 2020, a new virus (COVID-19) spread across the world, resulting in severalactions taken by different countries to curb the spread of the virus. Such actions include, amongothers, restrictions on crowding and travel. Brazil is among the countries with cases of COVID-19,which has been causing severe volatility in the Brazilian market as well as uncertainties about thecountry’s Gross Domestic Product (GDP) for 2020.

Management has been monitoring this matter and the impact on ongoing projects is still unclear.



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25. Supplementary information – Combined financial statements

As mentioned in Note 1, on December 30, 2019, the Company merged Camargo Correa InfraProjetos and Camargo Correa Participações into Camargo Correa Construções. This initiativeimproves efficiency, streamlines the management and monitoring of P&L, and provides synergy tooperations and management. Consequently, all profit or loss for 2019 of the merged companieswas allocated to the equity of the merging company (Camargo Corrêa Infra Construções S.A.).For the convenience of users of the financial statements, we present below the combinedstatements of financial position and of profit or loss of all operating companies that are part ofCCIC for the year ended December 31, 2019. The statements of financial position and of profit orloss of Ituango, herein called “CCCO”, were also included in these combined financial statements.This information have been prepared by the Company based on the audited statements.

The scope of our auditors’ work does not include issuing an opinion on this supplementaryinformation, as this disclosure is not required by the accounting practices adopted in Brazil.

Statement of financial position at December 31, 2019(In thousands of R$, COP and US$)

2019CCIC CCCO (Colombia) Eliminations Combined Combined Combined

R$ R$ R$ R$ US$ COPAssetsCurrent assets

Cash and cash equivalents 94,685 13,389 - 108,074 26,813 87,936,534Trade accounts receivable 184,162 130,571 (40,935) 273,798 67,928 222,781,123Transactions with related parties 75,831 - (36,611) 39,220 9,730 31,912,124Inventories 24,774 12,088 - 36,862 9,145 29,993,491Assets available for sale 1,781 - - 1,781 442 1,449,146Other receivables 36,483 1,037 - 37,520 9,309 30,528,885

Total current assets 417,716 157,085 (77,546) 497,255 123,367 404,601,303

Noncurrent assetsTransactions with related parties 6,159 - - 6,159 1,528 5,011,391Other receivables 2,279 2,706 - 4,985 1,237 4,056,143

8,438 2,706 - 11,144 2,765 9,067,534Investment 88,591 - (88,591) - - -Property, plant and equipment 311,099 21,131 - 332,230 82,425 270,325,468Intangible assets 19 - - 19 5 15,460Right of use 6,595 - - 6,595 1,636 5,366,151Total noncurrent assets 414,742 23,837 (88,591) 349,988 86,831 284,774,613

Total assets 832,458 180,922 (166,137) 847,243 210,198 689,375,916



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25. Supplementary information – Combined financial statements (Continued)

Statement of financial position at December 31, 2019 (Continued)

2019CCIC CCCO (Colombia) Eliminations Combined Combined Combined

R$ R$ R$ R$ US$ COPLiabilities and equityCurrent liabilities

Trade accounts payable 39,758 4,160 - 43,918 10,896 35,734,744Loans and financing 19,509 - - 19,509 4,840 15,873,881Transactions with related parties 3 - - 3 1 2,441Payroll, vacation and charges payable 49,262 10,607 - 59,869 14,853 48,713,588Taxes payable 10,817 21,069 - 31,886 7,911 25,944,670Advances from customers 160,118 - - 160,118 39,725 130,283,157Lease liabilities 6,349 - - 6,349 1,575 5,165,989Other obligations 1,921 56,495 (36,611) 21,805 5,411 17,742,068

Total current liabilities 287,737 92,331 (36,611) 343,457 85,212 279,460,538

Noncurrent liabilitiesLoans and financing 42,328 - - 42,328 10,501 34,441,009Lease liabilities 111 - - 111 28 90,317Deferred income and social contribution taxes 9,506 - - 9,506 2,358 7,734,744Transactions with related parties 40,935 - (40,935) - - -Provision for labor, tax and civil contingencies 1,211 - - 1,211 300 985,354

Total noncurrent liabilities 94,091 - (40,935) 53,156 13,187 43,251,424

EquityCapital 525,315 15,738 (15,738) 525,315 130,328 427,432,872Capital reserve 6,995 - - 6,995 1,735 5,691,619Accumulated losses (81,680) 72,853 (72,853) (81,680) (20,264) (66,460,537)Total equity 450,630 88,591 (88,591) 450,630 111,799 366,663,954

Total liabilities and equity 832,458 180,922 (166,137) 847,243 210,198 689,375,916

The balances of the statements of financial position of the companies merged into Camargo CorrêaInfra Construções S.A. are broken down in Note 1.



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25. Supplementary information – Combined financial statements (Continued)

Statement of profit or lossYear ended December 31, 2019(In thousands of R$, COP and US$)

2019

CCIC CCIP CCI Part,CCCO

(Colombia) Eliminations Combined Combined CombinedR$ R$ R$ R$ R$ R$ US$ COP(1) (2) (3)

Service revenue 237,426 945,854 - 396,201 - 1,579,481 391,863 1,285,175,753Costs of services (240,002) (858,830) - (310,037) - (1,408,869) (349,535) (1,146,353,946)Gross (loss) profit (2,576) 87,024 - 86,164 - 170,612 42,328 138,821,807

Operating expensesGeneral and administrative expenses (49,556) (61,808) (3,718) (5,639) - (120,721) (29,950) (98,227,014)Other operating expenses, net (3,953) (2,008) - 14,126 - 8,165 2,026 6,643,613Equity pickup (91) 63,663 36,527 - (100,099) - - -

(Loss) income before finance income(costs) (56,176) 86,871 32,809 94,651 (100,099) 58,056 14,404 47,238,406

Finance income 2,271 3,180 9 5,253 (3,272) 7,441 1,846 6,054,625Finance costs (5,445) (1,584) (111) (3,130) 3,272 (6,998) (1,736) (5,694,170)Foreign exchange difference, net (2,420) 86 - - - (2,334) (579) (1,899,105)

(5,594) 1,682 (102) 2,123 - (1,891) (469) (1,538,650)

(Loss) income before income andsocial contribution taxes (61,770) 88,553 32,707 96,774 (100,099) 56,165 13,935 45,699,756

Income and social contribution taxesCurrent (956) (248) - (32,409) - (33,613) (8,339) (27,349,878)Deferred 20,639 (8,378) - 707 - 12,968 3,217 10,551,668

Net (loss) income for the year (42,087) 79,927 32,707 65,072 (100,099) 35,520 8,813 28,901,546

1) Company remaining from the corporate reorganization process that took place on December 30, 2019, as described in Note 1.

2) Company merged into CCIC on December 30, 2019.

3) Company merged into CCIC on December 30, 2019.

financial statements camargo corrêa infra construções s.a....camargo corrêa infra construções...

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